Sunday, March 23, 2014

Here’s an update on the IBD Top 50 stocks investing strategies vs. $SPY

For the week, the IBD weekly strategy struggled, especially the strategies with the concentration of fewer stocks. There’s Russia. There’s China. There’s the “hawkish” Federal Reserve Chair Janet Yellen. And the market is seeing the selling off of the leading stocks that have the most volatility.

For the week, there were 29 stocks up and 21 stocks down for the IBD 50.

The total return since 2/8/2014 remains impressive against the SP500 for the more diversified IBD portfolios. The IBD 5 stocks had 1 gainer and 4 losers.

The portfolio is sold at the closing price Friday night, and rebalanced into the make-up of the IBD top 50.

For the IBD monthly strategy, the strategy is left hanging on to the top 5 stock QIWI through the end of March. It’s not doing so well. Again, the higher concentration in fewer stocks is weighing on the performance compared to the more diversified strategies.

That means we are seeing a difference in how the portfolios are behaving when the market rips higher versus when the market struggles.

None of the above strategies are a recommendation to buy or sell stocks. These are model portfolios constructed for entertainment only.

This is the IBD portfolio performance since 2/8/2014. Each portfolio begins with $10,000 and then invests an equal amount in the top 5, 10, 25 and 50 IBD stocks at the closing prices on Friday for the weekly model, and at the closing prices on the last trading day of the month for the monthly model. Since IBD changes the make up of their top stocks daily, this will only rebalance on Fridays or end of month. Daily changes in the IBD 50 or stock rankings are not considered. Changes in IBD’s overall market views are not considered. Stop loss orders or other market timing strategies are not considered.

Here’s an update on the IBD Top 50 stocks investing strategies vs. $SPY

For the week, the IBD weekly strategy struggled, especially the strategies with the concentration of fewer stocks. There’s Russia. There’s China. There’s the “hawkish” Federal Reserve Chair Janet Yellen. And the market is seeing the selling off of the leading stocks that have the most volatility.

For the week, there were 29 stocks up and 21 stocks down for the IBD 50.

The total return since 2/8/2014 remains impressive against the SP500 for the more diversified IBD portfolios. The IBD 5 stocks had 1 gainer and 4 losers.

The portfolio is sold at the closing price Friday night, and rebalanced into the make-up of the IBD top 50.

For the IBD monthly strategy, the strategy is left hanging on to the top 5 stock QIWI through the end of March. It’s not doing so well. Again, the higher concentration in fewer stocks is weighing on the performance compared to the more diversified strategies.

That means we are seeing a difference in how the portfolios are behaving when the market rips higher versus when the market struggles.

None of the above strategies are a recommendation to buy or sell stocks. These are model portfolios constructed for entertainment only.

This is the IBD portfolio performance since 2/8/2014. Each portfolio begins with $10,000 and then invests an equal amount in the top 5, 10, 25 and 50 IBD stocks at the closing prices on Friday for the weekly model, and at the closing prices on the last trading day of the month for the monthly model. Since IBD changes the make up of their top stocks daily, this will only rebalance on Fridays or end of month. Daily changes in the IBD 50 or stock rankings are not considered. Changes in IBD’s overall market views are not considered. Stop loss orders or other market timing strategies are not considered.